Introduction
Ledgy’s FRS 102 Expensing report helps you calculate share-based payment expenses for a selected period using the grants, vesting data, valuation inputs, and accounting settings stored in Ledgy.
This article explains how to generate the report, choose the reporting period and accounting settings, and review or export the results.
Important: Ledgy provides calculation tools, not accounting advice. Agree your report settings and any overrides with your company’s accountant or auditor.
Before you start
Your company must have access to Financial Reporting / Option Expensing
You need edit access to Financial Reporting to create a report period or change its settings. If you have view-only access, you can still open and export existing reports
Make sure the relevant grants, vesting schedules, fair value valuations, and other required inputs are available in Ledgy
Generate an FRS 102 expensing report
Go to Reporting > Financial
Under Report types, find FRS 102 and click Generate
Choose Expensing as the report type
Choose the report period
Review the filters and accounting settings described below
Click Generate report
After generating a report, click New report period in the page header to generate another period without returning to the Financial Reporting home page.
Choose a report type
The FRS 102 report-type selector includes:
Expensing — Expense calculations in aggregate and per grant or tranche
Disclosures — Supporting information for financial statement disclosures
This article focuses on the Expensing report.
Choose the report period
Continue from locked report
If your company has locked reports for the selected report type, Continue from locked report is selected by default.
Select the locked report that should provide the opening balance
Ledgy sets the new opening balance date to the day after the selected report’s closing balance date
Ledgy suggests the next closing balance date using the length of the selected locked period. You can change this date if needed
Ledgy loads the selected locked report’s settings to help you use a consistent calculation basis between periods
Custom period
Choose Custom period when you want to enter the opening and closing balance dates manually instead of continuing from a locked balance. If there are no locked reports yet, Ledgy shows a custom period.
Filter the report data
Depending on your company’s setup, the generation modal may include a Filter data section. You can include all data or filter by:
Equity plans
Stakeholders
Grant date range
Grant types
The generated report and its exports follow the filters you select.
Configure the accounting settings
Fair value
Black–Scholes is the default valuation method for option-like awards. RSUs use Intrinsic value.
For Black–Scholes calculations:
Price per share comes from the relevant fair value or share-price valuation data
Expected term is calculated from the grant’s timing, including its grant, vesting, and expiry dates
Exercise price comes from the grant’s strike price
Volatility and risk-free rate come from valuation data, accounting overrides, or available automation settings
You can override expected term or fair value through grant-level Custom accounting or Tranche-level overrides. Both upload templates include Expected term and Fair value columns.
Intrinsic value mainly uses the relevant share price. Where applicable, Ledgy also takes account of a hurdle or strike price.
Amortization
FRS 102 offers two amortization methods:
Front-loaded — The default. Each vesting tranche is amortized over its applicable service period, which recognizes more expense earlier for graded vesting awards
Linear — Expense is still calculated separately for each vesting tranche. It does not automatically spread the whole award evenly from the grant date to the final vesting date (works as a modified linear)
Forfeitures
You can choose a Static or Dynamic forfeiture method and whether Ledgy applies forfeitures using the Amortization end date or Vesting date.
The default is a Static 0% forfeiture rate. When you select Linear amortization, Ledgy uses the Static forfeiture method.
Expected term
Tranche-level expected term calculations controls how Ledgy calculates expected term:
Enabled — Ledgy calculates expected term separately for each tranche
Disabled — Ledgy calculates one weighted expected term at grant level and applies it to each tranche
Newly configured reports default to tranche-level expected term calculations.
Cost centre attribution
Choose how Ledgy attributes expenses when cost-centre movement data is used:
Pro-rate — Allocate expense across the cost centres that apply during the tranche’s amortization period
Current cost centre — Allocate the full cumulative expense to the cost centre active at the relevant balance date
The defaults are Pro-rate for equity-settled grants and Current cost centre for cash-settled grants.
Terminations
The Reverse expense on termination of vested units setting is off by default and is not shown unless it has been enabled for your company. Ask Ledgy Support if you need access to this setting.
Performance condition expectations
If performance conditions are in use, Ledgy shows their expectation status. Add any missing expectations and review them for every reporting period because they can affect the expense calculation.
Understand the expensing report
The FRS 102 Expensing report opens as a Ledgy grid with these built-in views:
Summary — Shows cumulative expense at opening balance (
Expense OB), cumulative expense at closing balance (Expense CB), and movement for the current period (Expense period)Detailed — Shows tranche-level grant data, fair value inputs and outputs, quantities, amortization, forfeiture rates, and the resulting expense
Cost centres — Appears when cost-centre movement data is present and groups the expense for cost-centre analysis
You can create a custom view by adding or removing columns, filtering data, or changing the grouping:
Click Save as new view to save a new custom view
Click Update view to save changes to an existing view
Click Revert to discard unsaved changes to the current view
Click Delete view to remove a custom view
Export the report
Click Export report in the page header. The available exports are:
Excel — All rows, groups collapsed
Excel — All rows, groups expanded
CSV — All rows, groups collapsed
CSV — All rows, groups expanded
The export follows the current report type, dates, filters, settings, and grouping state.
The collapsed view is the recommended view for download as blank cells will not be included.
For a Report Accounting Settings deep dive please visit IFRS 2 Expensing Report - Accounting Parameters Settings deep dive.
Troubleshooting
Why do I see a warning about missing fair value valuations?
Ledgy shows a warning when it cannot find the valuation data required for one or more awards. Add the missing valuation inputs or an accountant-approved accounting override, then generate the report again.
Why can’t Ledgy calculate fair value for some awards?
The required inputs depend on the award and valuation method.
Option-priced awards generally need a share price or FMV, volatility, and a risk-free rate. Ledgy also needs timing data to calculate expected term
Missing expiry or strike data normally produces a grant validation warning. Add the missing grant data or use an accountant-approved override where appropriate
A strike price of 0 can still produce a fair value when the remaining inputs are available. If Ledgy shows a strike-price warning for a genuine zero-strike award, contact Ledgy Support
Intrinsic-value awards mainly require the relevant share-price data rather than the full Black–Scholes input set
Custom accounting can provide a direct fair value or expected-term override where this treatment has been agreed with your accountant or auditor
Why can’t I create a new report period?
Check that your company has access to Financial Reporting / Option Expensing and that your role has edit access to Financial Reporting.
FAQ
When should I use Continue from locked report?
Use Continue from locked report when you want the next report period to start immediately after a previously locked report, so your opening balance follows your locked reporting history.